RBI Responds To YSRCP MP's Letter, To Probe Financial Fraud of Raghurama Krishnam Raju

AMARAVATI: The Reserve Bank of India (RBI) has responded to the complaint made by  YSR Congress Party (YSRCP) parliamentary party leader, MP V Vijayasai Reddy against the swindling of money by Ind-Bharat Thermal Power Ltd owned by YSRCP Narsapuram MP, Kanumuru Raghurama Krishnam Raju.

MP Vijayasai Reddy had written a letter to the RBI seeking an inquiry into bank loan fraud to Ind Bharat Thermal Power Limited. Responding to the letter, the RBI told MP Vijayasai Reddy that appropriate action would be taken.

On Saturday, the YSRCP released the letter written by the RBI to MP Vijayasai Reddy on October 8 stating that it would take appropriate action in connection with the company and related companies. In his letter the YSRCP MP had pointed out that the alleged swindling of public money by Raju’s company and the inaction by the Central Bureau of Investigation (CBI) led to the distrust of people on institutions.

RBI chief general manager Jayasree Gopalan referred to the complaint made by the latter to Union fFinance Minister Nirmala Sitaraman on July 21. 

The RBI official said the various concerns highlighted in the letter are under examination and appropriate action would be initiated against supervised entities for non-adherence of extant guidelines, if any.

RBI Letter To YSRCP MP V Vijayasai Reddy

Ind Barath Power Gencom Ltd Case Details

• A case was registered against Raghurama Krishnam Raju by the CBI  on  March 26 this year, for allegedly duping a consortium of banks of Rs 237.84 crore by producing forged documents between 2012 and 2017.
• The case was registered under Section 120 (b)(criminal conspiracy), 420 (cheating), 467 (forgery of documents), 468 (forgery of electronic record), and 471 (using forged documents for criminal purposes) of the Indian Penal Code, following a complaint lodged by State Bank of India, Chennai.
• Apart from Raju, his company Ind Barath Power Gencom Ltd and six other directors of the company were also booked in the case.
• While the plant was located in Toothukudi, Tamil Nadu, the corporate office was located in Hyderabad.
• As per the case FIR, Raju and others had allegedly diverted funds, manipulated books of accounts to defraud the consortium of banks, comprising Axis Bank, SBI, Indian Overseas Bank, UCO Bank, Syndicate Bank, Bank of India, Punjab National Bank and ILFS Financial Services Ltd.
• The company commenced its commercial operations in January 2010 but was shut down in May 2017.
• The fraud came to light during the forensic audit conducted by an audit firm at the request of the consortium of banks.
• The audit took into account the company’s transactions between May 25, 2012, and May 21, 2017, and the report was submitted on July 24, 2020. The company’s account in the consortium of banks turned into a non-performing asset (NPA) on May 28, 2017. (Case details Source Hindusthan Times)

Also Read: YSRCP MPs Submit Evidence of Hawala Transactions Between Raghurama Krishnam Raju and TV5